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Entries tagged “SPACs”

SEC Statement on Accounting for Warrants in SPAC IPOs is Causing Some Hands to Wring

im-report SEC Statement on Accounting for Warrants in SPAC IPOs is Causing Some Hands to Wring Debbie A. Klis · April 15, 2021

On April 12, 2021, the Securities and Exchange Commission (SEC) released a new interpretation, without notice or a comment period, which calls into question whether warrants issued by special purpose acquisition companies (SPACs) could continue to be considered equity instrument.  The SEC’s new interpretation reveals a position that is contrary to widespread practice of classifying…

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